2024 Key Accounting Dates and Deadlines for Your Diary
As a business owner, maintaining your accounts is crucial for the success of your company. To help you manage finances effectively throughout 2024, we’ve compiled a comprehensive list of key accounting dates and deadlines. These include personal tax returns, VAT returns, and more.
2024 Self-Assessment Key Dates
The UK tax year spans from April 6th to April 5th. The current tax year concludes on 5th April 2024, marking the beginning of the 2024/25 tax year on 6th April 2024.
31st January
- Deadline for online tax returns for the 2022/23 tax year.
- If you failed to file your return by this date, a £100 penalty will be automatically incurred, irrespective of whether any tax is owed.
- A £100 penalty per partner is applicable for a delayed partnership return.
- For paper returns related to the 2022/23 tax year not filed by this specified date, a three-month delay will be incurred, potentially leading to a daily penalty of £10 for up to 90 additional days.
- Additionally, the remainder of your tax liability for the 2022/23 tax year, along with the initial payment on account for 2023/24, is due.
2nd March
- The first automatic 5% late payment penalty will apply to any outstanding 2022/23 tax.
5th April
- The deadline for specific claims and elections pertaining to the 2019/20 tax year is approaching, with a four-year time limit set to expire.
30th April
- Paper returns for 2022/23 not received by this date will now be six months late. Therefore, an additional penalty may be charged of 5% of any tax due, or £300 if greater.
- Failing to submit online tax returns for the 2022/23 tax year by this deadline will result in them being considered three months overdue. Consequently, they may incur daily penalties of £10 for a period of up to 90 days, with a maximum total penalty of £900.
31st July
- Self-employed workers who pay tax through ‘payments on accounts’ will need to make their second payment by midnight on 31st July.
- The amount you will be required to pay is an estimate based on your earning in 2022/23.
- Online returns for 2022/23 not filed by this date will now be six months late and a further penalty may be charged of 5% of the tax due, or £300 if greater.
1st August
- The second automatic 5% late payment penalty will apply to any outstanding 2022/23 tax.
5th October
- If you’ve never submitted a self-assessment tax return before, you must register to do so by 5th October 2024.
- You will then be sent your Unique Taxpayer Reference (UTR) number, which you will need to file your first tax return.
31st October
- This is the deadline for filing a paper tax return.
- If paper returns are filed by this date, HMRC should be able to provide the following services:
- Calculate your tax on your behalf.
- Inform you of the amount owed by 31st January, 2025.
- Collect tax through your tax code if the owed amount is less than £3,000.
- However, submitting paper returns after this date will result in an automatic £100 penalty.
- For paper returns related to the 2022/23 tax year not submitted by this deadline, they will be considered 12 months overdue, subject to a further penalty of 5% of the tax due, or £300 if greater.
30th December
- If you file your tax return online and have earnings under PAYE, you can opt to have overdue tax collected via your tax code throughout the following year.
- To be eligible, your tax bill must be under £3,000. Any tax payable would be paid over 12 months from April 2025, rather than in a single sum by 31st January 2025.
If, at any point throughout the year, you encounter difficulties in meeting your tax obligations on time, consider establishing a Time to Pay Arrangement (TTP) before the tax deadline. This arrangement enables you to make tax payments in instalments, helping you avoid potential penalties. If you need assistance in setting up a TTP, please do not hesitate to contact us today.
Some Changes To Look Out For In 2024
Income Tax
As it stands, income tax rates and thresholds (except in Scotland) are to remain the same for 2024/25. Therefore, the Personal Allowance (PA), below which income is not taxed, is still £12,570.
The threshold for the commencement of the 40% tax rate is set at £50,270, while the top rate tax of 45% is applicable when income exceeds £125,140.
In Scotland, recent announcements have revealed changes for the 2024/25 tax year, introducing a new advanced tax rate of 45% applicable to income ranging from £75,000 to £125,140. Furthermore, the top rate of tax for income exceeding £125,140 is set to increase to 48%, up from the previous 47%. Meanwhile, the 19% starter, 20% basic, 21% intermediate, and 42% higher rates remain unchanged.
The starter and basic rate thresholds will be adjusted for inflation, reaching £14,876 and £26,561, respectively. However, the higher rate threshold will remain frozen at £43,662.
Scottish taxpayers may find it advantageous to bring forward the payment of income before 6th April 2024, to mitigate the impact of significant tax rate increases for higher earners.
Gift Aid
The eligibility for non-UK charities to qualify for UK charitable tax reliefs has been revoked. However, there is a transitional period in place. Non-UK charities that had confirmed their status before 15th March 2023, will retain their qualification until 1st April 2024 for company donations, or until 5th April 2024 for individual donations.
Subsequently, no relief will be available for donations made to non-UK charities, even if they have UK activities.
If you are considering a gift to charity, our team can ensure sure that it meets the correct qualifying requirements. Please get in touch to find out more.
Lifetime Allowance (LTA)
The lifetime allowance charge has been abolished for 2023/24 onwards.
For individuals with substantial pension funds, the removal of the Lifetime Allowance (LTA) charge could potentially influence the timing of retirement or alter the level of contributions one may wish to make before retiring.
Capital Gains Tax
The annual exempt amount (AEA) is £6,000 for 2023/24, but is reducing to £3,000 in 2024/25.
The AEA cannot be carried forward or transferred to a spouse, so, where possible, strive to make disposals before 6th April 2024 to utilise this year’s AEA, particularly as the amount of the exemption will decrease from this date.
Benefits-In-Kind
In certain instances, employees can avoid taxation on a benefit by reimbursing their employer, a process known as ‘making good.’ There are specific time constraints for this action.
For the tax year 2023/24, all reimbursements of taxable non-payrolled benefits must be completed by 6th July 2024, aligning with the deadline for submitting P11D forms.
The dates for making good on payrolled benefits provided in 2023/24 are:
- 1st June for the value of vehicle fuel used.
- 5th April for all other benefits.
For additional advice, please contact our dedicated team of experts.
Here to Support You Throughout 2024
Understanding and adhering to these critical dates can make or break your financial health in 2024. Leverage our expertise to ensure your financial matters are handled with precision and care. Whether it’s tax deadlines, financial reporting, or strategic planning, together, we can build a solid foundation for you and your business to thrive.
For guidance on any of the key accounting dates mentioned in this article, or to learn more about our services, please contact us, and our friendly team will be happy to advise you.